The Scottish Salmon Co. has indicated it plans to expand its presence in value-added processed seafood with the announcement of a joint venture with major shareholder Northern Link.
The company said yesterday (5 July) that it and Northern Link had established Scottish Seafood Investments to invest into companies “engaged in the value-added processing of seafood in the UK”.
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The Scottish Salmon Co. said the venture would allow it to accelerate growth in seafood value-added processing in the UK and to advance its goal of expanding its “farm-to-customer” value chain.
The Scottish Salmon Co. will take a 33% stake in the venture, with the remainder owned by Northern Link.
The new company is in the final stages of negotiations to make a GBP600,000 (US$959,772) investment into Associated Seafoods (ASL), a Scotland-based holding company.
ASL was set up by Bill Hazeldean and Dr Stewart McLelland, the CEO and COO of The Scottish Salmon Co., to invest into the value-added processing of salmon. The ASL holding company also plans to add other species to complement its offer.
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By GlobalDataThe initial investment will give The Scottish Salmon Co. a 50% stake in ASL. As ASL makes new acquisitions, the new Scottish Seafood Investments venture has committed to addtionally invest up to GBP12.9m in the holding company over a five-year period.
“Once ASL completes the creation of a viable and successful seafood value-added processing business, [we] will have the opportunity to fully integrate the business into its own operations,” The Scottish Salmon Co. added.
